DIGITAL FINANCIAL SERVICES AND E-TAX SYSTEMS EFFICIENCY IN CHAD: A THEORETICAL REVIEW
Alhadji Djidda Abdoulaye - PhD Fellow, Department of Accounting and Finance, Kenyatta University, Kenya
Prof Ambrose O. Jagongo (PhD) - Associate Professor, Accounting and Finance Department, Kenyatta University, Kenya
ABSTRACT
Digital financial services (DFS) are increasingly recognized as important instruments for modernizing tax administration, improving transparency, and expanding revenue mobilization in developing economies (World Bank, 2023; IMF, 2024). However, Chad continues to face persistent challenges in domestic revenue mobilization, reflected in a relatively low tax-to-GDP ratio of 13.1% in 2023, which remains below the African average of 16.1% reported across African economies. Despite the introduction of electronic tax platforms and mobile tax payment integration in 2023, the adoption of digital tax systems in Chad remains limited, owing to low technological literacy, limited digital financial training, inadequate infrastructure, and low taxpayer awareness of digital tax platforms (World Bank, 2023). This theoretical review examines the effect of digital financial services on the efficiency of e-tax systems in Chad. It specifically analyses the direct influence of digital financial services, technological literacy and user competence, financial digital training, and digital wallet usage on e-tax systems efficiency. The review further explores the mediating role of taxpayer awareness and education and the moderating role of infrastructure and accessibility in the relationship between digital financial services and e-tax efficiency. The study is anchored on the Technology Acceptance Model (Davis, 1989) and is supported by the Diffusion of Innovation Theory (Rogers, 2003), Fiscal Exchange Theory (Musgrave, 1966; Levi, 1988), and Institutional Theory (DiMaggio & Powell, 1983). Empirical literature is incorporated to examine previous studies on digital financial services, financial inclusion, and tax compliance in developing economies.